How Profitable Can Real Estate Investing Really Be?
Real estate attracts thousands of new hopeful entrepreneurs each year with the promise of big checks, but what can you really expect to get out of it?
Of course there a many ways to get involved in the real estate business. Some choose to start out as real estate agents hoping to gain additional knowledge and increase their income. However the average real estate agent only makes about $35,000 a year. Though there are others that make millions. However the big profits are usually in real estate investing itself.
What type of returns and profits you can realistically expect from real estate investing depends on what strategy and system you are using. Those choosing to act as private money lenders may receive modest annual returns of around 10% on their investments in exchange for the maximum security and a truly passive investment. Those who choose rehabbing and renting as their preferred form of real estate investing usually see monthly income from each property ranging from a couple of hundred dollars to several thousand in addition to a nice lump sum when they decide to refinance or sell.
However the really big windfalls are normally seen by those who begin flipping properties. Many who have started flipping homes or lots have been able to see profits of $50,000 to over $100,000 in just a matter of days. Wholesalers may make less than this in exchange for turning properties around quickly, often without ever having owned them. This often results in a steadier cash flow with average fees earned between $5,000 and $20,000 per property depending on the price range. It doesn’t take a genius to see that it only takes a handful of deals like this to start pulling in $1 million plus dollars a year! In fact for most involved in real estate investing a million dollars really isn’t that much at all. However the benefits are much broader than just the money. Real estate investing also offers and incredible amount of freedom and look at Donald Trump who is now considering a run for the White House.
by Than Merrill